THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures

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Ellen Hancock
6 years ago
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1 Net Operating Revenues: Reported (GAAP) $44,294 $41,863 $35,410 Items Impacting Comparability: Other Items (37) (9) 6 Comparable (Non-GAAP) $44,257 $41,854 $35,416 % Change Reported (GAAP) % Currency Impact % Change Currency Neutral (Non-GAAP) % Acquisitions, Divestitures and Structural Items % Change Organic Revenues (Non-GAAP) (15) (1) (15) (17) 3 Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. 1

2 Income from Continuing Operations Before Income Taxes: Reported (GAAP) $8,136 $6,742 Items Impacting Comparability: Asset Impairments/Restructuring Productivity & Reinvestment Equity Investees Transaction Gains/Losses 1,623 2,212 Other Items Comparable (Non-GAAP) $10,809 $10,889 % Change Reported (GAAP) % Currency Impact % Change Currency Neutral Reported (Non-GAAP) % Structural Impact % Change Currency Neutral (Structurally Adjusted) (Non-GAAP) (17) 0 (17) (4) (13) % Impact of Items Impacting Comparability (Non-GAAP) % Change Comparable (Non-GAAP) % Comparable Currency Impact (Non-GAAP) % Change Comparable Currency Neutral (Non-GAAP) % Comparable Structural Impact (Non-GAAP) % Change Comparable Currency Neutral (Structurally Adjusted) (Non-GAAP) (18) 1 (1) 2 (7) 9 Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. 2

3 Diluted Net Income Per Share from Continuing Operations: Reported (GAAP) Items Impacting Comparability: Asset Impairments/Restructuring Productivity & Reinvestment Equity Investees Transaction Gains/Losses Other Items Certain Tax Matters Comparable (Non-GAAP) December 31, 2013 $1.90 $1.60 $1.67 $1.49 $ (0.06) (0.01) $2.08 $2.04 $2.00 $1.91 $1.91 % Change Reported (GAAP) % Change Comparable (Non-GAAP) (16) 5 (10) (82) (2) (2) (4) 0 Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. 3

4 Operating Income: December 31, 2013 Reported (GAAP) $10,228 $9,708 $8,728 $8,626 $7,501 Items Impacting Comparability: Asset Impairments/Restructuring Productivity & Reinvestment Productivity Initiatives (2) CCE Transaction (2) Transaction Gains/Losses Other Items Comparable (Non-GAAP) $11,260 $10,954 $10,373 $9,958 $9,697 % Change Reported (GAAP) % Currency Impact % Change Currency Neutral Reported (Non-GAAP) % Structural Impact % Change Currency Neutral (Structurally Adjusted) (Non-GAAP) % Impact of Items Impacting Comparability (Non-GAAP) % Change Comparable (Non-GAAP) % Comparable Currency Impact (Non-GAAP) % Change Comparable Currency Neutral (Non-GAAP) % Comparable Structural Impact (Non-GAAP) % Change Comparable Currency Neutral (Structurally Adjusted) (Non-GAAP) (5) (10) (1) (13) (6) (12) (8) (3) (10) (3) (1) (5) (6) (4) (2) (5) 3 (10) (3) (5) (4) (3) (6) (11) (7) (2) (3) (1) (6) (9) Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. 4

5 Operating Margin: Basis Point Growth Reported (GAAP) Items Impacting Comparability (Non-GAAP) Comparable Operating Margin (Non-GAAP) 21.18% 19.70% 148 (6.20%) (3.74%) 27.38% 23.44% 394 5

6 Net Operating Profit After Taxes (NOPAT): Operating income Equity income (loss) net $7,501 1,071 8,572 Effective tax rate 82.5% Net operating profit after taxes (NOPAT) (Non-GAAP) $1,502 Comparable NOPAT: Comparable operating income (Non-GAAP) Comparable equity income (loss) net (Non-GAAP) $9,697 1,163 10,860 Comparable effective tax rate (Non-GAAP) 24.0% Comparable net operating profit after taxes (NOPAT) (Non-GAAP) $8,254 Invested Capital: debt (Non-GAAP) 1 equity Less: Cash, Cash Equivalents and Short-Term Investments Marketable securities Invested capital (Non-GAAP) Less: Assets held for sale discontinued operations Liabilities held for sale discontinued operations Net assets held for sale discontinued operations (Non-GAAP) Invested capital less net assets held for sale discontinued operations (Non-GAAP) 2017 Return on Invested Capital (ROIC): Return on invested capital (ROIC) (Non-GAAP) Two-Year Average $46,697 $45,709 $47,685 21,099 23,220 18,977 16,754 18,150 15,358 4,684 4,051 5,317 $46,357 $46,728 $45,987 3,665-7, ,496 2,917-5,833 $43,440 $46,728 $40, % 1 debt is the sum of loans and notes payable, current maturities of long-term debt, and long-term debt. 2 Return on invested capital is calculated by dividing comparable net operating profit after taxes by invested capital less net assets held for sale discontinued operations. 6

7 Net Operating Profit After Taxes (NOPAT): Operating income Equity income (loss) net $8, ,461 Effective tax rate 19.5% Net operating profit after taxes (NOPAT) (Non-GAAP) $7,616 Comparable NOPAT: Comparable operating income (Non-GAAP) Comparable equity income (loss) net (Non-GAAP) $9, ,854 Comparable effective tax rate (Non-GAAP) 22.5% Comparable net operating profit after taxes (NOPAT) (Non-GAAP) $8,412 Invested Capital: debt (Non-GAAP) 1 equity Less: Cash, Cash Equivalents and Short-Term Investments Marketable securities Invested capital (Non-GAAP) 2016 Two-Year Average $44,913 $44,116 $45,709 24,492 25,764 23,220 16,891 15,631 18,150 4,160 4,269 4,051 $48,354 $49,980 $46, Return on Invested Capital (ROIC): Return on invested capital (ROIC) (Non-GAAP) % 1 debt is the sum of loans and notes payable, current maturities of long-term debt, and long-term debt. 2 Return on invested capital is calculated by dividing comparable net operating profit after taxes by invested capital. 7

8 Net Operating Profit After Taxes (NOPAT): Operating income Equity income (loss) net $8, ,217 Effective tax rate 23.3% Net operating profit after taxes (NOPAT) (Non-GAAP) $7,069 Comparable NOPAT: Comparable operating income (Non-GAAP) Comparable equity income (loss) net (Non-GAAP) $10, ,949 Comparable effective tax rate (Non-GAAP) 22.5% Comparable net operating profit after taxes (NOPAT) (Non-GAAP) $8,485 Invested Capital: debt (Non-GAAP) 1 equity Less: Cash, Cash Equivalents and Short-Term Investments Marketable securities Invested capital (Non-GAAP) 2015 Two-Year Average $42,903 $41,690 $44,116 28,163 30,561 25,764 16,821 18,010 15,631 3,967 3,665 4,269 $50,278 $50,576 $49, Return on Invested Capital (ROIC): Return on invested capital (ROIC) (Non-GAAP) % 1 debt is the sum of loans and notes payable, current maturities of long-term debt, and long-term debt. 2 Return on invested capital is calculated by dividing comparable net operating profit after taxes by invested capital. 8

9 (In millions except debt leverage) Gross Debt and Net Debt: Cash, Cash Equivalents and Short-Term Investments Marketable securities cash, cash equivalents, short-term investments and marketable securities (Non-GAAP) $15,358 5,317 $20,675 Loans and notes payable Current maturities of long-term debt Long-term debt Gross debt (Non-GAAP) Net debt (Non-GAAP) 1 $13,205 3,298 31,182 $47,685 $27,010 1 Net debt is calculated by subtracting total cash, cash equivalents, short-term investments and marketable securities from gross debt. EBITDA: Income from Continuing Operations Before Income Taxes $6,742 Less income items: Interest income 677 Other income (loss) net (1,666) Add expense items: Interest expense 841 Depreciation and amortization 1,260 Earnings before interest, taxes, depreciation and amortization (EBITDA) (Non-GAAP) $9,832 Comparable EBITDA: Comparable income from continuing operations before income taxes (Non-GAAP) $10,889 Less income items: Interest income 677 Comparable other income (loss) net (Non-GAAP) 155 Add expense items: Comparable interest expense (Non-GAAP) 803 Depreciation and amortization 1,260 Comparable earnings before interest, taxes, depreciation and amortization (EBITDA) (Non-GAAP) $12,120 Gross and Net Debt Leverage: and Gross debt (Non-GAAP) $47,685 Comparable earnings before interest, taxes, depreciation and amortization (EBITDA) (Non-GAAP) $12,120 Gross debt leverage (Non-GAAP) 3.9 Net debt (Non-GAAP) $27,010 Comparable earnings before interest, taxes, depreciation and amortization (EBITDA) (Non-GAAP) $12,120 Net debt leverage (Non-GAAP) 2.2 9

THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions except debt leverage)

Gross Debt and Net Debt: THE COCA-COLA COMPANY AND SUBSIDIARIES (In millions except debt leverage) As of December 31, 2013 Cash and cash equivalents $10,414 Short-term investments 6,707 Marketable securities